The US has long decried the measure. With talks between Washington and Paris not yielding much result, however, France’s Senate gave the final approval for it last month. The new legislation imposes a 3% annual levy on French revenues of major companies, and applies retroactively, from the beginning of 2019. It only targets businesses with yearly global sales of over €750 million and make over €25 million in France.

On Monday, US trade officials said that they had investigated the measure and found it was “unusually burdensome for affected US companies,” according to a statement.

The US move “sends a clear signal that the United States will take action against digital tax regimes that discriminate or otherwise impose undue burdens on US companies,” said trade representative Robert Lighthizer.

The trade office warned of “growing protectionism” in Europe at the expense of the US.

Lighthizer also said the Trump administration was also looking into a similar response for such taxes in Austria, Italy, and Turkey.